Outline how fairtrade goods benefit the local community

Fairtrade goods ensure farmers receive a guaranteed price for their produce, this means that they have an increased income that is then spent in the local area, thus creating an economic multiplier. Moreover, this money goes towards providing for their families, such as paying for their children to go to school and consequently supporting future generations through increased standards of education. Similarly, these guaranteed wages may be taxed by the local government, this would result in the money being re-invested into the local infrastructure in sectors such as education and health, thus further benefitting the local population indirectly. This illustrates how fairtrade goods create a sustainable system.